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What are CBDCs? The truth behind central bank digital coins

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CBDCs (central bank digital currencies) are basically fiat money, but in digital form. Each country issues its own through its central bank, so technically it's what you already know: pesos, dollars, euros… just in blockchain.

Now, here's where it gets interesting: although they are sold as “cryptocurrencies,” they are a rare hybrid. They are not decentralized like Bitcoin. They operate on private blockchains controlled 100% by central banks. This means that governments still have all the control, but they use blockchain technology to make it more efficient.

What is the difference then?

Real crypto = decentralized, without intermediaries, you have control

CBDC = centralized, in the hands of the central bank, blockchain is just the technological tool

It's not the same to put fiat money into blockchain as to create a true cryptocurrency. CBDCs are the future of state digital money, but they have nothing to do with the decentralizing philosophy of crypto.

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